Objectives

The primary objective of this tender is to appoint a service provider to supply and develop a customised GRAP 104 compliant Expected Credit Loss (ECL) model for receivables and other financial instruments related to the Municipal Annual Financial Statements (AFS) over a period of three years. The project aims to ensure compliance with the revised GRAP 104 standard, facilitate accurate impairment calculations, support audit processes, and assist in updating relevant accounting policies and disclosures.

Scope

• Develop, customise, and implement an ECL model/tool aligned with the new GRAP standard to calculate provisions for expected credit loss for the applicable financial years.
• Enable data import from the SAGE Evolution 200 system or the municipal financial system, directly or indirectly.
• Assist in performing credit assessments, impairment calculations, and related financial statement schedules.
• Support updating of accounting policies, disclosures, and transitional provisions.
• Provide technical training and skills transfer on the implementation of GRAP 104.
• Assist with audit queries and produce an ISA 540 compliant actuarial report on ECL calculations for prior and current years.
• Offer support for Caseware related to GRAP 104 and work on-site if required.
• Recommend improvements for components of the Annual Financial Statements and perform other financial functions as needed.

Technical Requirements

• Use a robust methodology based on the principles of the revised GRAP 104 standard.
• Create a data-driven model considering the nature, characteristics, and classification of municipal financial instruments.
• Develop a tool or model capable of importing and processing data from the municipal financial system.
• Assist in data preparation, including conversion, cleaning, and sorting.
• Conduct a high-level review of the AFS for GRAP compliance.
• Deliver a functional model/tool to calculate relevant amounts for the implementation of GRAP 104.
• Provide training and develop a skills transfer plan for the finance team.

Skills Requirements

• Proven experience in developing and implementing financial models compliant with GRAP standards, especially GRAP 104.
• Experience in credit assessment, impairment calculations, and financial statement preparation.
• Qualified Chartered Accountants (CA) with at least 6-12 years of relevant experience, including post-article experience.
• Demonstrated ability to work with data import/export tools, particularly with municipal financial systems like SAGE Evolution.
• Expertise in actuarial reporting in accordance with ISA 540 standards.
• Knowledge of municipal accounting policies, transitional provisions, and audit processes.
• Capacity to provide technical training and facilitate skills transfer to municipal staff.
• Ability to work on-site and provide ongoing support and recommendations for financial statement components.